How to solve for the current price in the given equation

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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How to solve for the current price in the given equation
Face Value or (par value)= $1,000
Current Yield= 5.01%
Annual Coupon Rate= 5.59%
Annual Coupon= 5.59%*$1,000
Annual Coupon3 $55.90
Current Yield= Annual Coupon/ Current Price
5.01%= $55.90/Current Price
Current Price=
3
34
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39
Coupon Rate (Excel)
Current Yield
Bond Price
Enter
Transcribed Image Text:Face Value or (par value)= $1,000 Current Yield= 5.01% Annual Coupon Rate= 5.59% Annual Coupon= 5.59%*$1,000 Annual Coupon3 $55.90 Current Yield= Annual Coupon/ Current Price 5.01%= $55.90/Current Price Current Price= 3 34 35 36 37 38 39 Coupon Rate (Excel) Current Yield Bond Price Enter
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